The Australian dollar has dropped below 92 US cents for the first time in six months as continued US dollar strength outweighs positive local jobs data.

At 0700 AEST on Friday, the local unit was trading at 91.00 US cents, down from 91.61 cents on Thursday.

Early on Friday morning it fell as low as 90.89 US cents, the currency’s weakest level since March 24.

On Thursday, data showed that the number of people with jobs rose by 121,000 in August and the unemployment rate fell to 6.1 per cent from 6.4 per cent the month before.

However, most economists have some doubt about the figures, finding no convincing explanation for the sudden surge in employment, especially as it comes after a period of weak economic growth.

The Aussie dollar briefly rose above 93 US cent but fell against a US dollar, that is rallying on speculation that the Federal Reserve might raise its cash rate earlier than expected.

The Aussie has fallen almost three per cent against the greenback so far this week, which if sustained would be the biggest weekly fall in just over a year.

National Australia Bank senior economist Spiros Papadopoulos said the Aussie is also under pressure from falling metals prices.

“Not even the strongest monthly rise ever seen in Australian employment could save the Australian dollar overnight,” he said.

“The market, like ourselves, didn’t seem to believe the figures presented by the Australian Bureau of Statistics yesterday.”

AAP